Still, there is good news for those who
enthusiastically stock their display cases with ruby rings and peridot
pendants: Since many colored gemstones offer a more affordable alternative to
diamonds, they seem to be catching the eyes of more budget-minded consumers.

A total 39 percent of survey respondents said that
the recession has actually driven their colored gemstone sales higher.

Meanwhile, 48 percent reported that their colored
stone sales are climbing as a percentage of overall sales, up from just 32
percent who reported this as a trend last year.

When pressed about the pros and cons of colored
gemstone jewelry, respondents had a hard time listing any negatives.

But one positive that kept coming up was that
jewelers can make better margins on colored gemstones than they can with
diamonds.

"The margins on diamonds are so low now and I
am trying to get into really nice colored stones because the margins are
better," one survey-taker wrote. "Colored stones are blind to the
consumer, and diamonds are not. The Internet has ruined the diamond industry
and we are just trying to adapt and come up with better ways to make
money."

Know what you're selling

Colored gemstone sales, however, are not for every
jeweler, respondents note.

Retailers who decide to carry color must be
educated on the various gemstones that they are selling.

"You need to know your merchandise and be
able to answer your customers' questions about all aspects [of colored stones],
from hardness to enhancements," one panelist wrote.

Those who are able to offer insight might find
themselves with an advantage over the competition.

"I can carry a higher markup because of the
knowledge of gemstones in this area," one panelist wrote. "Most
retailers that I have as competition have little knowledge pertaining to
colored gemstones. This makes us the authority in the area [and is] good for sales."
By Michelle Graff

March 17, 2010Editor's note: This story first appeared in the
February 2010 print edition ofNational Jeweler.